Four US senators have criticized a law firm involved in FTX’s bankruptcy case for a conflict of interest.
In a Jan. 9 letter to Judge John Dorsey of the U.S. Bankruptcy Court for the District of Delaware, Senators John Hickenlooper, Thom Tillis, Elizabeth Warren and Cynthia Lummis urged the judge to approve the appointment of an independent auditor in FTX’s bankruptcy case, noting Sullivan. & Cromwell, the law firm tasked with the investigation, previously provided legal services to FTX and “one of its partners even served as general counsel to FTX,” a potential conflict of interest. Occurs during the company’s bankruptcy process.
“The damage of FTX and other mismanaged digital asset companies. That caused a lot of damage. They have destroyed the life savings of tens of thousands of customers in the United States and around the world,” the letter said. “We believe it is critically important to appoint a strong investigator aiming to investigate FTX, FTX US and related agencies to disclose the facts necessary to reassure FTX clients – and the wider public – with impartiality and inform congressional hearings on future digital asset legislation.”
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